Compound interest – Casio ALGEBRA FX2.0 Financial User Manual
Page 6
6
3. Compound Interest
This calculator uses the following standard formulas to calculate compound interest.
u
uu
u
u
Formula
I
PV+PMT
u
+ FV
i
(1 +
i
)
n
(1 +
i
)
n
(1 +
i
u
S
)
[
(1 +
i
)
n
–1
]
1
= 0
i =
100
I
Here:
PV=
–(
PMT
u
+
FV
u
)
β
α
FV=
–
β
PMT
u
+
PV
α
PMT=
–
β
PV
+
FV
u
α
n =
log
{ }
log
(1 +
i
)
(1 +
i S
)
PMT
+
PVi
(1 +
i S
)
PMT
–
FVi
i
(1 +
i
)
n
(1 +
i
u
S
)
[
(1 +
i
)
n
–1
]
=
α
(1 +
i
)
n
1
=
β
F
(
i
) = Formula
I
+
(1 +
i S
)
[
n
(1 +
i
)
–
n
–1
]
+S
[
1–(1 +
i
)
–
n
]
–
FV
•
n
(1 +
i
)
–
n
–1
i
i
PMT
(1 +
i S
)[1– (1 +
i
)
–
n
]
F(i)=
–
[
]
u
uu
u
u
Formula
II
(
I
% = 0)
PV
+
PMT
×
n
+
FV = 0
Here:
PV =
– (
PMT
u
n
+
FV
)
FV =
– (
PMT
u
n
+
PV
)
PV
: present value
FV
: future value
PMT
: payment
n
:
number of compound periods
I
%
: annual interest rate
i
is calculated using Newton’s Method.
S
= 0 assumed for end of term
S
= 1 assumed for beginning of term